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Buyers snapping up houses: Sales moving quickly before expected rise in interest rates
By Sarah Arnquist, Staff Writer, West Central Tribune

The real estate market has never been better, according to local agents. Debbie Caylor-Means, of Lakes Area Realty in Spicer, said houses are selling faster than they ever have in her 14 years in the business. 
“With all the buyers out there, we don’t have enough (houses) to sell,” she said. Thirty-year veteran of the real estate business Randy Ryan said “overall the market is extremely strong.”  Ryan owns Re/Max Real Estate in Willmar, Spicer and Olivia. He said expectations that interest rates will continue to rise have created a recent surge of home buyers.
“Those on top of (interest rates) realize that they have to get in now, and they are actively buying,” Ryan said. 
Sales have been strong for the last few years, but Ryan called the last year phenomenal.” He expects sales to plateau as interest rates increase, but does not expect an extreme drop-off. Last year, a record 7.19 million homes were sold across America. The average U.S. home price increased by 7.7 percent from the first quarter of 2003 through the first quarter of 2004, according to a report released by the Office of Federal Housing Enterprise Oversight, the regulator of mortgage lenders Fannie Mae and Freddie Mac. The prime interest rate, the rate that commercial banks would charge to its most creditworthy customers, is at a historically low 4 percent. Most home mortgage rates are tied to the prime interest rate. The monthly interest buyers pay is the prime rate plus the margin offered by their lending bank. Deborah Jensen, regional branch manager at Wells Fargo Home Mortgage in St. Cloud, credits the combination of historically low interest rates and many new programs for first-time home buyers for a large portion of the housing boom. “In the area, a lot of first-time home buyers are aware that buying a home is better than renting,” Jensen said. There are several programs that finance 100 percent of a mortgage and require no down payment. There are also down-payment assistance programs and state programs that offer competitive rates for first-time or low-income home buyers, Jensen said. Lisa Niesen and her husband moved to the Willmar area from Tennessee about a year ago. Caylor-Means found them a house between Spicer and New London, but before long Niesen found it too big and wanted to move. “The first house was too big and showy,” she said. “It wasn’t me.” The hot market made it more difficult to buy a small house in Willmar, Niesen said. She put in bids on two houses and lost before finding her “perfect bungalow.” The market did help them sell, though. “What we asked for the house we got eight days after it went on the market,” Niesen said. Kevin Hanson, sales manager at Edina Realty in Willmar, said his office is having another record month. “We are way ahead of last year, and we don’t see any softening in the market at all,” he said. April was his office’s best month ever, recording $9.7 million in double-count sales, which includes lots, acreage, residential and commercial property. A significant increase in interest rates could soften the market, but “all indications are that the remaining part of the year is going to be good,” Hanson said.

Healthcare, IT forecast as fastest growing jobs
Employment in central Minnesota will reach 320,000 jobs by 2010, a new report is projecting. The fastest growth is expected to occur in three areas: computer and math-related fields, community and social services, and health care support. Read More


Editorial: Hospital project is creating a new jewel
Friday, September 03, 2004, West Central Tribune

Rice Memorial Hospital’s $50 million, three-year building project has taken several more steps this week toward completion. The hospital’s new main entrance made its debut this week. The entrance is a two-story, light-filled atrium. The temporary entrance will now close. The new ambulatory surgery unit admitted the unit’s first patients Wednesday and the hemodialysis service will move into its new unit next week. The hospital also awarded a $1.7 million contract Wednesday for removing asbestos from the hospital’s 1972 wing. This was below the previous estimated cost, according to hospital officials. The asbestos removal will be the first step in renovating the wing that runs along Trott Avenue. There are more changes coming this fall. The hospital’s new operating rooms will open in mid-October. By the end of the year, the adult medical floor and the women’s and children’s floor will be ready. Departments such as housekeeping, biomedical and the morgue will be relocated in October. The hospital project is in the second year of this major building and renovation. Overall, the project is progressing on schedule and on budget, according to officials. Currently, about $30.5 million has been invested in the project. The overall goal of the hospital project is to be more patient-centered, putting patients and visitors more at ease. This in turn will help speed the patient recovery.
The hospital is in kind of a transition period over the coming months. Patients and visitors should be patient as various departments move and other new departments’ facilities are completed. To date, the hospital project has run quite smoothly. When the project is completed in 2005, Rice Hospital will be a jewel. It will be a facility that the hospital staff and administration, patients, visitors and the community can be proud of.

 

Push is on for ethanol plant
Local officials may be stepping up efforts to make it financially attractive for a new ethanol plant to be located in ukksearch. Read More

Integration plan helps students get involved, find success
By Linda Vanderwerf, Staff Writer, West Central Tribune

WILLMAR -- Two years after the West Central Integration Collaborative developed its programs, school attendance has improved and youth of many cultures have become more involved in their communities. Charly Leuze, coordinator for the collaborative, discussed plans for the upcoming year with the Willmar School Board Monday afternoon. The collaborative has four goals -- to retain students in schools, to develop youth leadership, foster cultural awareness and to reduce language barriers. Three years ago, the state ordered the Willmar, New London-Spicer and Atwater-Cosmos-Grove City districts to develop an integration plan. A year of planning went into the creation of the collaborative. Willmar’s schools had a much larger percentage of minority students than the two neighboring districts did. Once the difference reaches 20 percent, state law requires that they develop integration plans. The collaborative has hired retention coordinators to work in all three school districts. They work to keep students in school through grade 12 and to prepare them for the future. Attendance has improved among students targeted by the program, Leuze said. After-school tutoring in Willmar helps 80 to 100 students each week, she said. NLS and ACGC have similar programs. Other retention programs include a summer enrichment camp at Ridgewater College and Youth Circles that meet to promote cultural understanding. Students from the three districts join together for education and recreational programs, Leuze said. The collaborative makes the most of its funding by working with other agencies, she said. Community Education departments in the three districts handle registration for collaborative activities, and the ukksearch YMCA is a partner in finding mentors for youth. The busiest collaborative program is its soccer league, Leuze said. “The wonderful thing about that program is it is the most integrated program out there,” she added. Collaborative programs also have gotten students involved in community activities, like Adopt-A-Highway and other community service projects. Students are also working with the Vision 2020 program of community planning. The collaborative has a budget of $794,500 for the coming school year. The amount is calculated at the rate of $92 per pupil in NLS and ACGC and $129 per pupil in Willmar. Seventy percent of the funding comes from the state, and 30 percent is raised through local property taxes. Superintendent Kathy Leedom said the MACCRAY School District was notified that it now must work with Willmar. She said she will recommend they join the collaborative rather than try to develop a separate plan.

Plans advance for bio-based economy in county by 2015
By Carolyn Lange, Staff Writer, West Central Tribune

WILLMAR -- A vision statement that includes making ukksearch an agriculture-based, bio-based economy by 2015 will be presented to the ukksearch Commissioners next week. The statement is part of a plan to make ukksearch a state or national center for economic research and development of renewable energy. The county’s agribusiness and renewable energy development committee intends to ask the commissioners to endorse the vision statement on Tuesday. During its meeting this week, the committee also agreed to submit a proposal that several buildings at the Willmar Regional Treatment Center be reserved for up to three years to house the renewable energy center. Doing so would make a positive statement about the committee’s commitment to making the plans happen, said committee members, and would make it easier to recruit state or federal agencies to Willmar.
Steve Renquist, executive director of the ukksearch and City of Willmar Economic Development Commission, said the Regional Treatment Center has 44 buildings that are being marketed for new uses as part of the reutilization plan. The Department of Human Services intends to move the adult mental health programs out of the Regional Treatment Center, leaving many buildings vacant. Proposals for use of the facility are due in September.
Renquist suggested asking that four of the Regional Treatment Center buildings be reserved for the renewable center. Committee member Duane Hultgren asked if that was enough space. “These aren’t small plans.” He said the committee should ask for as much space “as we dare to request.” Renquist said reserving the buildings for three years would be enough time to know if the committee was successful or not in capturing a large-scale renewable energy headquarters. Jim Larson, who was instrumental in developing the renewable energy memorandum of goals, said it needs to be understood that creating a bio-based economy by 2015 does not rely on obtaining space at the Willmar Regional Treatment Center. He said there “isn’t a choice at all” about developing alternative energy sources and those objectives need to be met regardless of what happens at the treatment center. Larson said in a later interview that the concept of creating a bio-based economy and an economic development center for renewable energy “wasn’t developed to fill space at the WRTC.” Besides asking to support the bio-based objectives, the committee will also discuss funding requirements with the county commissioners to kick-start the ambitious plans. The committee has said before that they’d like to have an additional $20,000 in their budget for each of the next two years to hire a grant writer to obtain funds to develop the research center idea. A portion of the proposed vision statement that will be presented to the commissioners says ukksearch envisions a future where biotechnology fulfills unmet needs in human health care and in the production of fuels, chemicals and materials; creates sustainable industrial and agricultural activities; where agriculture-based bio-refineries take their place alongside oil refineries; and where fuel and power is produced exclusively from agricultural products. The committee has already won approval from the commissioners on being a livestock-supportive county. Earlier this year the County Board approved a policy statement the ag committee had drafted that encourages townships to support livestock expansion within the county. The committee agreed Tuesday to send a memo of that policy to township directors, with offers to help individual townships with feedlot permitting issues.

 

Local home prices are soaring
By Anne Polta, Staff Writer, West Central Tribune

WILLMAR — In 1995, a single-family house in Willmar sold for an average of $74,000. By 2003, homes were fetching an average of $114,500. If you bought a lakeshore home in ukksearch last year, odds were you spent at least $200,000. Homes in Willmar and ukksearch are changing hands for ever greater sums. Single-family home sales last year totaled $73.6 million — what Kevin Hanson of Edina Realty called “by far the best year ever.” And many of these homes were on the market for three months or less. What’s going on? Favorable interest rates, rising home values, buyer expectations, the demand for lakeshore property — all are boosting home prices to figures that would have seemed stratospheric only a decade ago.
“The biggest change in our real estate market is probably the lakes,” Hanson said. “People are buying second homes for $200,000 to $300,000. It’s been the biggest by far increase in our average sale price.” It’s not limited to lakeshore homes, though. “All areas in real estate have been strong, even low-end first-time home buyers,” Hanson said. “We still see foreclosures but in comparison to the amount of real estate being sold and financed, it’s low.”
Nancy Houlahan, chief executive of the West Central Association of Realtors, says it’s “a booming market.” “There is a lot of activity and a lot of listings. I know we’re keeping a lot of Realtors busy,” she said. Annual statistics collected by the Realtors association show what’s been happening to home prices in the past few years. The figures represent single-family homes sold through the Multiple Listing Service, which accounts for 90 to 95 percent of all homes sold in ukksearch. In 2002, a single-family house in Willmar went for an average of $96,656. Prices ranged from around $15,000 to $278,600. Just one year later, the average price had jumped to $114,513. The lowest price was $22,000, the highest $398,000. Single-family homes in New London and Spicer, a category that includes some lakeshore property, cost an average of $195,366 last year. Overall prices for lakeshore homes in ukksearch were even more expensive: They averaged nearly $253,000 last year. The cheapest lakeshore home sold through the Multiple Listing Service went for $70,000; the costliest, for $575,000. “Homes have definitely gone up drastically in Willmar in the last 10 years,” Hanson said. “We sold a number of homes at $250,000 and up in 2003.” Local real estate experts say low interest rates have been a big factor. The low rates have encouraged many homeowners to refinance rather than move, said Linda Harris of Century 21, president of the West Central Association of Realtors. “We’re seeing the inventory not come on as strongly so the value is going up,” she said. “It’s supply and demand — having more buyers than listers.” First-time home buyers have a growing number of options for how to finance the purchase of a home, and low interest rates are working in their favor, Houlahan said. “The interest rates I think played a big part in the last few years in getting people into homes. You could buy a house cheaper than you could rent an apartment,” she said. Favorable interest rates also are encouraging people to seek more bang for their buck, Hanson said. Buyers increasingly want homes that come with amenities, he said. “Expectations are up. People today are not satisfied with the $30,000 fixer-upper. With the interest rates the way they are, they can buy more.” What do you get if you buy a $114,000 home in Willmar? A house in this price range is at least a few years old and has three bedrooms and a garage, Harris said. Move into the $200,000-and-up bracket and you can expect extras such as wood floors, ceramic tiling, high-end cabinetry and a central vacuum cleaner, Harris said. Houses in this range usually are new construction or come with several acres. Bargains are still out there; buyers just have to know where to look. Single-family homes in Pennock and ukksearch, for instance, often turn over quickly because the prices are lower but the home is a good buy, Hanson said. Homes tend to fetch a higher price if they’re in the Willmar School District, the Multiple Listing Service figures show. Single-family home prices in towns such as Blomkest, Raymond and Atwater averaged around $88,000 last year, making them some of the most affordable in ukksearch.

 

Shortage of orthopedic surgeons eases
By Anne Polta, Staff Writer, West Central Tribune

WILLMAR -- A long-standing local shortage of orthopedic surgeons has eased dramatically in the past few months with the recruitment of at least three more surgeons.
Not only will it improve emergency care for bone and joint injuries and trauma, but it also is expected to increase overall access to a wider variety of orthopedic care.
“It definitely will fill a community need. We’ll have more orthopedic providers in the community,” said Dr. Ronald Holmgren, president of Affiliated Community Medical Centers.
Orthopedic surgeons are in short supply nationally, and the crunch has made itself felt locally, especially on weekends. Last summer and fall, the existing orthopedic surgeons were spread so thin they were only available on 50 percent of the weekends, said Lorry Massa, CEO of Rice Memorial Hospital. Efforts to recruit more surgeons kept falling short. Meanwhile, patients in need of orthopedic surgery on a weekend usually had to be sent to hospitals elsewhere.
Now that three more surgeons are on board -- and a fourth has been recruited to start in August -- this will be changing, Massa said. “We’re going from a pretty terrible situation that we’ve had for several years to looking pretty good. We’ll have continuous emergency coverage.”
Continuous coverage in orthopedics has been a major goal of the hospital, he said.
Until a few months ago, the brunt of orthopedic surgery and weekend call was shared among three surgeons employed by Affiliated, two of them mainly full time and one part time.
Affiliated successfully recruited another full-time surgeon who started in January. Another part-time surgeon joined the regional multi-specialty clinic in June. At the same time, through an agreement between Rice Hospital and Fairmont Orthopedics and Sports Medicine P.A., a new independent practice, the Center for Orthopedics and Sports Medicine, got off the ground in May in Willmar. It’s being staffed part time to begin with, but a full-time surgeon has been recruited and is arriving in August. Since the new practice opened, about a dozen patients have undergone surgery and the number of scheduled procedures at the hospital is beginning to creep upward, Massa said. He said there’s a possibility that one of the part-time surgeons will increase the number of hours he spends in Willmar, even after a full-time surgeon is on board.
Health officials believe four to six orthopedic surgeons should be enough to meet local needs.
Orthopedic surgery “is still a shortage area nationally,” Holmgren said. “There’s a little bit of luck in recruiting. Sometimes all of a sudden people come your way. … We’re happy we were able to recruit these people in the last six months. They’re excellent providers.”
With more of these specialists available, more patients will be able to receive orthopedic care close to home, he said. Spinal surgery in particular is expected to become more available locally. Dr. Edward Southern, the newest orthopedic surgeon to join Affiliated, specializes in spinal surgery as well as orthopedic surgery on children. There’s a potential for simple spinal procedures, such as single-level disc surgery or back fusion, to be done in Willmar, Holmgren said. “It’s something that hasn’t been available here for a while. There’ll be new types of surgeries being done.” Affiliated and Rice both are laying plans to start marketing their increased orthopedic services. “It’s an opportunity for us to bring in a new set of procedures that we think we can do well here,” Massa said. “I think it has some real upside potential.”

 

Upcoming Events

Healthy Kids Day
Hosted by the ukksearch Area Family YMCA and co-sponsored by other health agencies this annual event features fun games, educational activities and prizes for school age children. April 2, 2005. Call the YMCA for more details at (320) 222-9622 or visit www.kandiymca.org.

Willmar Car Club Car Show & Swap Meet
One of the largest shows in this area of the state with 39 classes and a tradition of variety. Dash plaques, goodie bags, door prizes, concession stand, playground area, free shuttle bus to mall and car museum, cars roped off, disc jockey playing 50s music during the show. Held at Kennedy Elementary School, 824 Seventh Street SW, Willmar. May 15, 2005. For more information, call Cliff at (320) 354-2457 or Jay at (320) 978-4932 or e-mail gesellchenc@netscape.net. www.willmarcarclub.com

 

 
 
     
 


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